The Central Bank of Russia cut the key interest rate three basis points on Thursday from 14% to 11%, as inflation in the country shows signs of subsiding, according to the regulator.
The move is part of the easing of capital control measures adopted in March to protect the economy from the onslaught of Western sanctions.
According to the regulator, “the latest weekly data points to a significant slowdown in the current price growth rates.”
“Inflationary pressure eases on the back of the ruble exchange rate dynamics as well as the noticeable decline in inflation expectations of households and businesses,” the press release reads.
The regulator notes that last month, annual inflation reached 17.8%, but based on estimates on May 20, it slowed down to 17.5%, “decreasing faster than in the Bank of Russia’s April forecast.”